<div class="py-4" id="valueLineTabbedContent">
    <div class="fr-view">
        <h2 class="text-3xl mb-2 font-bold">Part 3: Building a Portfolio</h2>
        <h4 class="text-xl font-bold my-2">Introduction</h4>
        <p class="mb-2">
            There are many things to look at when you are evaluating an equity
            investment. For example, you must try to assess the company's
            long-term prospects, taking into account factors such as
            competition, emerging technologies, raw material costs, labor costs,
            and financial strength.
        </p>
        <p class="mb-2">
            Finding all that information on your own and knowing how to evaluate
            it can be a daunting task. Professional securities analysts go to
            great lengths to read annual and quarterly reports, 10-Ks and 10-Qs
            filed with the SEC, the financial press, trade publications, and
            more. They also talk to competitors, visit plants and retail sites,
            and interview management. You probably don't have the time for
            in-depth research. And since you want to build a diversified
            portfolio, you would have to be studying several companies at the
            same time.
        </p>
        <p class="mb-2">
            To simplify that process, Value Line has developed an investment
            strategy you can use to help you meet your investment goals. It's a
            way to help you quickly identify stocks that are likely to perform
            best, based on the company's Timeliness™ Ranking System. Timeliness
            ranks for individual stocks and industries are published each week
            in <em>The Value Line Investment Survey</em>.
        </p>
        <h4 class="text-xl font-bold my-2">The Value Line Investment Survey</h4>
        <p class="mb-2">
            <em>The Value Line Investment Survey</em>
            is a three-part publication available to subscribers in print and online.
            Value Line University introduces you to the information
            <em>The Value Line Investment Survey</em> provides and the ways you,
            as an investor, can benefit from it.&nbsp;
        </p>
        <div class="px-4 flex flex-col">
            <div class="flex flex-row">
                <figure class="float-left flex-none">
                    <img
                        alt=""
                        src="https://www.valueline.com/getmedia/66825494-a1c5-46bb-82f1-be6e25697e21/summary_index.png"
                        style="width: 300px;"
                        class="fr-fic fr-dii fr-fil"
                    />
                </figure>
                <p class="mb-2">
                    Part 1—<em>Summary &amp; Index</em>—is a weekly guide to the
                    contents of
                    <em>The Value Line Investment Survey</em>. It lists the page
                    numbers for all the companies analyzed and whether the
                    stocks have moved up or down in
                    <em>Timeliness</em>
                    over the last week. It also lists the industries that are covered
                    as well as industry ranks. It also provides a capsule summary
                    of essential statistics for each stock in
                    <em>The Value Line Investment Survey</em>, and other current
                    information.
                </p>
            </div>
            <div class="flex flex-row">
                <figure class="float-left flex-none">
                    <img
                        alt=""
                        src="https://www.valueline.com/getmedia/7ed8ae4c-c7b3-46a0-b7d9-7411b4e9e8ec/selection_opinion.png"
                        style="width: 300px;"
                        class="fr-fic fr-fil fr-dii"
                    />
                </figure>
                <p class="mb-2">
                    Part 2—<em>Selection &amp; Opinion</em>—presents Value
                    Line's latest economic and stock market commentary, plus
                    analysts' advice on current investment strategies, one or
                    more interesting stock selections, and a variety of timely
                    economic and stock market statistics. It also includes four
                    model stock portfolios-each designed to meet a different
                    investment objective.
                </p>
            </div>
            <div class="flex flex-row">
                <figure class="float-left flex-none">
                    <img
                        alt=""
                        src="https://www.valueline.com/getmedia/479d521f-24e2-495f-b8ae-1ec14d54b722/ratings_reports.png"
                        style="width: 300px;"
                        class="fr-fic fr-fil fr-dii"
                    />
                </figure>
                <p class="mb-2">
                    Part 3—<em>Ratings &amp; Reports</em>—is the core of
                    <em>The Value Line Investment Survey</em>. It provides
                    regularly updated information and analysis on the most
                    actively traded stocks on the U.S. Exchanges in more than 90
                    industries.
                    <em>The Survey</em> reports on stocks and industries in a distinctive
                    one-page format. Information on each page is updated every 13
                    weeks.
                </p>
            </div>
        </div>
        <h5 class="text-lg font-bold w-full">Selection &amp; Opinion</h5>
        <p class="mb-2">
            To help you make the most of the information it provides, every week
            Value Line reviews the current business environment and analyzes the
            economic and interest rate trends that affect the stock market in
            the "Economic and Stock Market Commentary" on the front page of
            Selection &amp; Opinion. Value Line also updates the allocation of
            equities and cash reserves it's recommending.
        </p>
        <p class="mb-2">
            The rest of Selection &amp; Opinion presents additional investment
            analysis, including some general background information and some
            that you can use in building and managing your own portfolio. Some
            of the features are weekly while others appear on a quarterly,
            semi-annual or annual schedule.
        </p>
        <p class="mb-2">
            "Market Monitor," for example, tracks changes in the major equity
            indexes, trading volume, key interest rates and related information,
            while the "Quarterly Economic Review" presents a detailed analysis
            of recent economic developments and a detailed economic forecast.
        </p>
        <p class="mb-2">
            The "Stock Highlight" focuses on one of the stocks favorably ranked
            for Timeliness in The Value Line Investment Survey. The Stock
            Highlight provides a more detailed examination than is possible in
            the analyst's report that appears on that stock's Value Line page.
        </p>
        <h5 class="text-lg font-bold">Value Line’s Model Portfolios</h5>
        <p class="mb-2">
            To illustrate how an investment strategy can meet different goals,
            Value Line analysts select and maintain four model portfolios, each
            with a distinctive investment objective. All four portfolios hold 20
            stocks.&nbsp;
        </p>
        <p class="mb-2">
            These portfolios, which are closely monitored and regularly updated,
            are featured each week in <em>Selection &amp; Opinion</em> along with
            a brief commentary on changes in the lists or a discussion of one of
            the companies currently held.
        </p>
        <p class="mb-2">&nbsp;</p>
        <p class="mb-2">
            To be considered for <strong>Portfolio 1</strong>, modeled for the
            more aggressive investor wanting to emphasize price appreciation
            rather than income, a stock must have a Timeliness rank of 1 or 2
            and the company must possess a Financial Strength grade of at least
            B+ at the time of purchase. Although the analyst managing the
            portfolio can sell a holding at any time, either to buy a stock that
            seems to have a greater potential or to realign the portfolio
            diversification, any stock whose Timeliness rank falls to 3 or lower
            is automatically dropped.&nbsp;
        </p>
        <p class="mb-2">Here are some other characteristics of Portfolio 1:</p>
        <ul class="mb-2 pl-2 mx-4 list-disc">
            <li class="mb-2">
                The companies have generally had above average earnings records.
            </li>
            <li class="mb-2">
                The companies often have relatively smaller market
                capitalizations.
            </li>
            <li class="mb-2">
                Few of these stocks pay a meaningful dividend and most pay no
                dividends at all.
            </li>
            <li class="mb-2">
                A number of the stocks in the portfolio have Betas considerably
                higher than 1, which indicates that they are more volatile than
                the market as a whole. (Betas are showing on the Value Line
                company reports in the upper left corner.)
            </li>
        </ul>
        <p class="mb-2">
            <strong>Portfolio 2</strong>, for the moderate investor, includes
            stocks that will provide above-average income and whose prices have
            the potential to increase. Typically, more conservative investors
            will be most comfortable with a portfolio such as this one.
        </p>
        <p class="mb-2">
            To be included in the portfolio, a stock must pay a large enough
            dividend so that its yield ranks in the top half of all stocks
            tracked in <em>The Value Line Investment Survey</em>. It must also
            have a Timeliness rank of at least 3 at the time of selection and a
            Safety rank of 3 or higher. If the Timeliness or Safety rank drops
            below 3, the stock is automatically dropped from the portfolio.
        </p>
        <p class="mb-2">
            Here are some distinguishing features of Portfolio 2:
        </p>
        <ul class="mb-2 pl-2 mx-4 list-disc">
            <li class="mb-2">
                The stocks in this portfolio are commonly ranked 3 (Average) for
                Timeliness rather than the 1 or 2 typical of Portfolio 1.
            </li>
            <li class="mb-2">
                The portfolio includes some value stocks, which are equities
                that typically trade at lower P/E ratios than the other stocks
                tracked in <em>The Value Line Investment Survey</em>
            </li>
            <li class="mb-2">
                With few exceptions, the Betas of the stocks in Portfolio 2 are
                below—sometimes well below—those in Portfolio 1, which indicates
                that the stocks generally change in price more slowly than the
                market in general.&nbsp;
            </li>
        </ul>
        <p class="mb-2">
            <strong>Portfolio 3</strong> emphasizes stocks with the potential for
            large 3- to 5-year price increases. It is most appropriate for investors
            focused on long-term capital gains.
        </p>
        <p class="mb-2">
            Stocks in this portfolio are those the analysts believe have
            well-defined growth potential and have Timeliness and Safety
            rankings of at least 3 at the time they are added to this portfolio.
        </p>
        <p class="mb-2">In addition, you can observe that:</p>
        <ul class="mb-2 pl-2 mx-4 list-disc">
            <li class="mb-2">
                This portfolio is more varied than the others in almost every
                area. The range of prices is the greatest as is the variation in
                P/E’s. There is also a greater mix of stocks paying
                above-average dividends and those paying no dividends.
            </li>
            <li class="mb-2">
                The portfolio at times includes stocks with no Timeliness rank
                because of recent restructurings or pending acquisitions.
            </li>
        </ul>
        <p class="mb-2">
            <strong>Portfolio 4</strong> should interest those investors focused
            on income. It focuses on stocks with above-average dividend yields. In
            fact, for inclusion, an equity must have a yield that is, at minimum,
            one percentage point above the median of all dividend-paying stocks tracked
            in The Value Line Investment Survey, a Timeliness rank of at least 3,
            and a Financial Strength grade of B+ or higher at the time of purchase.
        </p>
        <p class="mb-2">In addition, you can observe that:</p>
        <ul class="mb-2 pl-2 mx-4 list-disc">
            <li class="mb-2">
                The stocks within the portfolio are typically selected from a
                broad range of industries, which provides a meaningful degree of
                diversification.
            </li>
            <li class="mb-2">
                The portfolio’s risk profile will likely be less than the
                broader market, given the usual concentration of low-Beta
                stocks.
            </li>
        </ul>
        <p class="mb-2">
            The investment performance of all four portfolios is published
            quarterly in the <em>Selection &amp; Opinion</em>.
        </p>
        <h5 class="text-lg font-bold">Suggestions For Building A Portfolio</h5>
        <p class="mb-2">
            You can use the Value Line portfolio that seems to be most aimed at
            achieving your own objectives. Or you can select individual stocks
            from the Value Line Ranking System to add to your holdings.
        </p>
        <p class="mb-2">
            It is important to remember that if you are picking and choosing
            among stocks in the different lists, you always maintain a
            diversified portfolio. So, as you buy new stocks, choose them with
            an eye to how they will complement those you already own.
        </p>
        <p class="mb-2">
            We recommend that you own at least 10 stocks in several different
            and diverse industries and pick from stocks ranked 1 and 2 for
            Timeliness in the highest ranked industries. You should also try to
            have stocks with Safety and Technical ranks of 3 or better.
        </p>
        <p class="mb-2">
            The Value Line approach to building a strong and diversified
            portfolio that is likely to outperform the market is to select
            timely stocks in timely industries—that means stocks ranked 1 or 2
            for Timeliness in relation to the universe of stocks that Value Line
            tracks and industries ranked in the top third of all those followed
            by Value Line.
        </p>
        <p class="mb-2">
            A good way to start is to turn to the section called Timely Stocks
            in Timely Industries, usually found on page 25 of the <em
                >Summary &amp; Index</em
            >. In addition, you should use a range of other information provided
            on the Value Line page to help you select from among the stocks
            ranked 1 and 2 in their specific industries, concentrating on those
            industries in the top third of the Timeliness ranks.
        </p>
        <p class="mb-2">
            Another approach is to use the many stock screens (stocks listed
            according to various criteria) in the second half of the <em
                >Summary &amp; Index</em
            > to search for interesting candidates for your portfolio.
        </p>
        <table
            class="border-collapse border border-slate-400 w-full"
            cellpadding="5"
            cellspacing="5"
        >
            <tbody
                ><tr>
                    <td class="border border-slate-300 " colspan="2" width="400"
                        ><strong>Building Your Portfolio</strong></td
                    >
                    <td class="border border-slate-300" width="200"
                        ><strong>Maintaining Your Portfolio</strong></td
                    ></tr
                ><tr>
                    <td class="border border-slate-300" width="200"
                        ><strong>What Value Line Does</strong></td
                    >
                    <td class="border border-slate-300" width="200"
                        ><strong>What You Should Do</strong></td
                    >
                    <td>&nbsp;</td></tr
                ><tr>
                    <td class="border border-slate-300"
                        ><strong>By Industry – Timeliness</strong>
                        <p class="mb-2">
                            Value Line ranks industries in order of their
                            Timeliness (relative price performance in the next
                            12 months).
                        </p></td
                    >
                    <td class="border border-slate-300"
                        ><p class="mb-2">
                            Read the latest Value Line reports on the top-ranked
                            industries. Select at least six industries rated
                            highest for Timeliness.
                        </p></td
                    >
                    <td class="border border-slate-300">&nbsp;</td></tr
                ><tr>
                    <td class="border border-slate-300"
                        ><strong>By Stock – Timeliness</strong>
                        <p class="mb-2">
                            Value Line ranks all the stocks in <em
                                >The Value Line Investment Survey</em
                            > in five categories according to their Timeliness. The
                            top 100 stocks are ranked 1 (Highest) for expected relative
                            performance over the next 12 months; 300 are ranked 2
                            (Above Average); about 900 are ranked 3 (Average); 300,
                            4 (Below Average); and 100, 5 (lowest).
                        </p></td
                    >
                    <td class="border border-slate-300"
                        ><p class="mb-2">
                            Make up a list of those stocks included in your six
                            or more most timely industries that are also ranked
                            1 (Highest) or 2 (Above Average) for relative price
                            performance in the next 12 months.
                        </p></td
                    >
                    <td class="border border-slate-300"
                        ><p class="mb-2">
                            When and if a stock in your portfolio is found to be
                            no longer a timely investment – that is to say, it
                            has fallen to a rank 4 or 5 for Timeliness – make
                            that stock a candidate for sale.
                        </p></td
                    ></tr
                ><tr>
                    <td class="border border-slate-300"
                        ><strong>By Stock – Safety</strong>
                        <p class="mb-2">
                            Value Line also ranks the stocks in <em
                                >The Survey</em
                            > according to their Safety in five categories with 1
                            (Highest) expected to be least volatile and financially
                            most strong, and 5 (Lowest) most volatile and least strong
                            financially.
                        </p></td
                    >
                    <td class="border border-slate-300"
                        ><p class="mb-2">
                            Eliminate from your list of Timely Stocks in Timely
                            Industries those that fall short of your Safety
                            standard.
                        </p></td
                    >
                    <td class="border border-slate-300"
                        ><p class="mb-2">
                            These Safety ranks are significant and should not be
                            ignored.
                        </p></td
                    ></tr
                ><tr>
                    <td class="border border-slate-300"
                        ><strong>By Stock – Technical</strong>
                        <p class="mb-2">
                            Value Line also ranks all the stocks in <em
                                >The Survey</em
                            > according to their expected price performance relative
                            to the overall market in the next three to six months,
                            based on complex analysis of the stock's relative during
                            the prior 52 weeks. Unlike the Timeliness Rank, earnings
                            are not a factor in the Technical Rank.
                        </p></td
                    >
                    <td class="border border-slate-300"
                        ><p class="mb-2">
                            Particularly if you are a short term investor, you
                            should look at the Technical Ranks and try to limit
                            purchases to stocks with Technical ranks of 1 or 2.
                            Under no circumstances, however, should the
                            Technical Rank replace the Timeliness Rank, which
                            has a superior record over the years.
                        </p></td
                    >
                    <td class="border border-slate-300">&nbsp;</td></tr
                ><tr>
                    <td class="border border-slate-300"
                        ><strong>By Stock – Income</strong>
                        <p class="mb-2">
                            Value Line estimates the next 12 months dividend
                            yield of each stock at its most recent price. The
                            expected yield is updated in the weekly <em
                                >Summary &amp; Index</em
                            >. Value Line also shows the median yield of all
                            dividend-paying stocks for comparative purposes.
                        </p></td
                    >
                    <td class="border border-slate-300"
                        ><p class="mb-2">
                            Eliminate from your list of Timely Stocks in Timely
                            Industries those that fall short of your
                            current-income standard. For example, if your yield
                            standard is 3%, you may want to eliminate stocks
                            that yield less than 3%.
                        </p></td
                    >
                    <td class="border border-slate-300"
                        ><p class="mb-2">
                            When a stock is sold, replace it with another stock
                            ranked 1 or 2 for Timeliness that also meets your
                            standards for Safety and current income. It would be
                            best in the long run to maintain diversification
                            through six or more stocks in at least six different
                            industries.
                        </p></td
                    ></tr
                ><tr>
                    <td class="border border-slate-300"
                        ><strong>Value Line Reports</strong>
                        <p class="mb-2">
                            Value Line reports on each stock and each industry
                            once every three months, on a preset schedule, in
                            the <em>Ratings &amp; Reports</em>
                            section. The page numbers on which reports appear are
                            shown in the weekly
                            <em>Summary &amp; Index</em>. When new information
                            requires, a "Supplementary Report" is issued as
                            often as weekly in the final pages of the
                            <em>Ratings &amp; Reports</em> section and online on
                            the day it is written.
                        </p></td
                    >
                    <td class="border border-slate-300"
                        ><p class="mb-2">
                            Read the latest Value Line reports on the industry
                            groups and stocks that have qualified according to
                            all of your standards.
                        </p>
                        <p class="mb-2">
                            Make your final selection of 10 or more stocks from
                            the list that has been refined through the above
                            procedures.
                        </p></td
                    >
                    <td class="border border-slate-300"
                        ><p class="mb-2">
                            Read these report pages regularly to ensure that the
                            stocks you own or are interested in meet your
                            criteria.
                        </p></td
                    ></tr
                ><tr>
                    <td class="border border-slate-300"
                        ><strong>Selection &amp; Opinion</strong>
                        <p class="mb-2">
                            Value Line's <em>Selection &amp; Opinion</em> section
                            provides a current appraisal of the economy and the stock
                            market. It recommends how much of one's capital should
                            be invested in common stocks and how much should be set
                            aside temporarily in cash reserves.
                        </p></td
                    >
                    <td class="border border-slate-300"
                        ><p class="mb-2">
                            Read Value Line's <em>Selection &amp; Opinion</em> each
                            week. Also, go to the Value Line web site for our latest
                            Daily Commentary.
                        </p></td
                    >
                    <td class="border border-slate-300"
                        ><p class="mb-2">
                            When the Value Line service in its <em
                                >Selection &amp; Opinion</em
                            > section recommends building cash reserves because the
                            general market seems temporarily to be too high, sell
                            stocks and invest instead in short-term government bonds
                            or other safe instruments. In selling, dispose of stocks
                            ranked 5, 4 or 3 for Timeliness, in that order.
                        </p></td
                    ></tr
                ></tbody
            >
        </table>
        <p class="mb-2"><a name="Managing" /></p>
        <h5 class="text-lg font-bold">Managing A Portfolio</h5>
        <p class="mb-2">
            Once you have begun to buy stocks, you'll need to monitor your
            portfolio. Here's the Value Line approach:
        </p>
        <ul class="mb-2 pl-2 mx-4 list-disc">
            <li class="mb-2">
                Set up a portfolio to monitor the stocks you own or those you
                are considering. You can do this on the Value Line Web site.
            </li>
            <li class="mb-2">
                Check the prices of your stocks on www.valueline.com and look
                for news relating to your holdings.
            </li>
            <li class="mb-2">
                Check your portfolio on the Value Line Web site
                regularly-perhaps once a day or once every other day-to look for
                news developments affecting your stocks.
            </li>
            <li class="mb-2">
                Keep up to date with the full and supplementary reports Value
                Line issues on your stocks, as well as any changes in their
                Timeliness, Safety or Technical ranks.
            </li>
            <li class="mb-2">
                Take appropriate action, including selling stocks that have
                dropped in rank or seem likely to come under selling pressure.
            </li>
        </ul>
        <p class="mb-2"><a name="Updating" /></p>
        <h5 class="text-lg font-bold">Updating A Portfolio</h5>
        <p class="mb-2">
            Choosing appropriate stocks is only the first phase of successful
            investing. You also have to keep track of how your investments are
            performing and make decisions about when to replace your holdings.
        </p>
        <p class="mb-2">
            Typically, changing conditions in the economy as a whole or in the
            stock market are signals to update your portfolio. Successful
            investors keep regular track of their portfolios and adjust them
            when appropriate to keep their investment strategies on track, even
            when the stock market in general is performing in a fairly
            consistent way.
        </p>
        <p class="mb-2">
            The information in The Value Line's Investment Survey that you use
            to identify stocks to buy initially is the same information that can
            help to track and update your portfolio. For example, if you select
            a stock because it is ranked 1 or 2 for Timeliness, but during the
            period you own it the rank is downgraded to a 4, that is a stock you
            would normally replace if you were using the Value Line investment
            strategy.
        </p>
        <p class="mb-2">
            Statistical evidence supports that approach. In fact, investors who
            consistently sell a stock when it falls to a rank 3, rather than
            waiting until it drops to rank 4 or 5, have had a higher overall
            portfolio return although they have also paid higher brokerage fees
            because they have been trading more frequently.
        </p>
        <p class="mb-2">
            While Value Line updates its performance data and the Timeliness and
            Technical ranks every week, you will probably find that updating
            your individual portfolio somewhat less frequently is also a
            reliable approach.
        </p>
        <p class="mb-2"><br /></p>
        <p class="mb-2"><br /></p>
    </div>
</div>
